What's happening
This bill ends the real property tax exemption for major league sports arenas in New York City starting with the 2026 assessment roll, redirecting collected revenue to the MTA.
Why it matters
Closes a long-standing tax loophole for major league sports arenas. in New York City, which have historically been exempt from property taxes due to special agreements—potentially increasing city tax revenues significantly.
Specifies that future tax liability cannot be shifted onto teams, franchises, or other entities. through lease agreements or contracts, ensuring arena owners themselves are responsible, and preventing workarounds that could undermine the intent of the law.
Directs all new property tax revenue and penalties from these arenas specifically to the MTA. , meaning the change has a targeted impact on public transit funding, rather than just adding to the city's general funds.
May affect future negotiations and business operations for arena owners, teams, and the city. , potentially influencing decisions about arena investments, lease structures, and the long-term presence of major league teams in New York City.
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Who cares
Owners of qualifying sports properties
The bill would end the property tax exemption beginning with the 2026 assessment roll and declare agreements shifting taxes from property owners to other entities void against public policy.
NHL and NBA franchise owners
The bill would discontinue the exemption for qualifying properties jointly used by major league hockey and basketball teams for home games.
New York City Department of Finance
The bill would require the city to remit revenue and penalties collected on the affected property to the Metropolitan Transportation Authority semiannually.
Metropolitan Transportation Authority
The bill would direct those collections into the MTA finance fund.
Headline styles
End Stadium Tax Breaks
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 27
History
- Referred to local government
- Referred to local government
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
End Stadium Tax Breaks
In Assembly Committee · Real Property Taxation · Sponsor David Weprin
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
957
2025-2026 Regular Sessions
IN SENATE (Prefiled)
January 8, 2025
Introduced by Sens. KAVANAGH, BRISPORT, CLEARE, GONZALEZ, GOUNARDES, HOYLMAN-SIGAL, JACKSON, KRUEGER, RAMOS, RIVERA, SALAZAR -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
AN ACT to amend the real property tax law, in relation to discontinuing the real property tax exemption for certain real property used for professional major league sports
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Legislative intent. The legislature hereby declares that any provision in a lease, agreement or any other written instrument requiring that any taxes or their equivalent, set forth in such instrument in the form of any charges of any kind whatsoever, imposed by any taxing authority, shall be made the obligation of any person, sole proprietorship, partnership, firm, corporation, limited liability company, association, franchise, team, or any other entity, other than the owner or owners of such property, shall be deemed void as against public policy.
§ 2. Section 429 of the real property tax law, as added by chapter 459 of the laws of 1982, is amended to read as follows:
§ 429. Real property used for professional major league sports. Real property within a city having a population of one million or more, used by both a professional major league hockey team which is a member of the National Hockey League and a professional major league basketball team which is a member of the National Basketball Association to play their home games shall be exempt from taxation to the extent said taxes are the obligation by lease or otherwise of the owners of franchises for such teams, provided that such owners enter into a written agreement with the chief executive officer of the municipality in which such property is located to play their home games within such municipality for a
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02342-01-5
period of at least ten consecutive years; provided however, that in no case shall the exemption granted by this section apply to any assessment roll issued after the two thousand twenty-five assessment roll. The tax exemption provided herein shall be granted to real property being used, in whole or in part, for the aforesaid purposes on the date such agreement is executed and shall apply to taxes which become due and payable after the aforestated agreement is executed and shall continue with respect to such property as long as both of said teams play their home games therein and no longer. Such exemption shall not apply with respect to any improvement to such property made after the date such agreement is executed which improvement is not used for the provision of facilities or services related to sports, entertainment, expositions, conventions or trade shows. If one or both of said teams shall cease to play their home games in said property at any time, the tax exemption provided herein shall cease immediately and such property shall immediately be restored to the tax rolls and thereupon become subject to taxation and shall be taxed pro rata for the unexpired portion of the taxable year.
§ 3. The real property tax law is amended by adding a new section 429-a to read as follows:
§ 429-a. Expiration of major league sports exemption. The real property tax exemption under section four hundred twenty-nine of this article shall expire upon the effective date of this section; provided however, that the revenue and penalties collected by the New York city department of finance for such real property shall be remitted by the city of New York to the metropolitan transportation authority on a semiannual basis, to be deposited into the metropolitan transportation authority finance fund established under section one thousand two hundred seventy-h of the public authorities law.
§ 4. This act shall take effect immediately; provided however, that the provisions of this act shall apply to assessment rolls beginning with the 2026 assessment roll.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the real property tax law, in relation to discontinuing the real property tax exemption for certain real property used for professional major league sports
Purpose or general idea of bill
This bill amends Section 429 of the real property tax law, "real proper- ty used for professional major league sports," to require that the owners of Madison Square Garden pay real property taxes.
Summary of provisions
Section 1 of the bill states the Legislative intent behind the repeal.
Read the full memo (704 words)
Section 2 of the bill amends Section 429 of the real property tax law to end the tax exemption after the 2023 assessment roll.
Section 3 of the bill adds a new section 429-a to the real property tax law which directs all revenue collected from the ending of this tax exemption towards the MTA finance fund.
Section 4 of the bill sets forth the effective date.
Justification
Madison Square Garden has been a New York institution for nearly 150 years. Across three centuries, the four venues that have held this name have showcased the very best of sports and entertainment to the people of this state, and to millions of visitors and viewers from around the world.
However, for the last forty years, New Yorkers have not only been supporting the privately-owned MSG at the Box Office, they've been subsidizing The Garden's near $50 million annual property tax bill, as well.
This tax exemption was given to the arena in 1982 after former owners Gulf & Western Industries had threatened to move the Knicks and Rangers to New Jersey-as the New Jersey Nets, Devils, and New York Giants had recently done. Gulf & Western lobbied NYC Mayor Ed Koch for a full prop- erty tax exemption which he recommended to the state legislature. At that time, the exemption cost the state around $5 million annually; money that was used by Gulf & Western to build the stadium's first luxu- ry skyboxes. Mayor Koch told the NY Times in 2002 that he believed the exemption would sunset after ten years, but no such provision existed in the law.
In the thirty-eight years since the legislature granted this exemption, the state of New York has lost over $550 million in revenue, according to the NYC Independent Budget Office (180). Further, if current proper- ty value trends continue, MSG's total tax break could clear $1 billion by,2031). Meanwhile, the Knicks' market value in 2020 is now $4.6 billion, nearly seven times its 2011 value; while the Rangers' value has more tripled over the same period to $1.65 billion, according to Forbes. In his 2014 testimony regarding this proposed repeal, MO Deputy Director George Sweeting noted that "the Garden is now, by all accounts, a highly profitable enterprise," due to its "cable television network, more intensive use of the facility to generate advertising revenue, and construction of new luxury boxes and club seating areas with higher ticket prices." Deputy Director Sweeting stated that " the Garden's exemption is the only significant property tax exemption in state law that benefits a single private for-profit firm in the city."
The conditions and fears that may have made this exemption necessary in 1982 have long subsided, and no exemption is granted in perpetuity. It is long past time to end one of our state's most blatant examples of corporate welfare.
Prior legislative history
2024: S1632A (Kavanagh) - REFERRED TO LOCAL GOVERNMENT:
2023: S1632A (Kavanagh) - REFERRED TO LOCAL GOVERNMENT:
2022: S3122 (Kavanagh) - REFERRED TO LOCAL GOVERNMENT: /A9209 (Weprin) referred to real property taxation
2021: S3122 (Kavanagh) - REFERRED TO LOCAL GOVERNMENT:
2020: S2897 (Kavanagh) - REFERRED TO LOCAL GOVERNMENT: /A4206 (Weprin) - referred to real property taxation
2019: S2897 (Kavanagh) - REFERRED TO LOCAL GOVERNMENT: /A4206 (Weprin) referred to real property taxation
2018: S8128 (Kavanagh) - REFERRED TO LOCAL GOVERNMENT: /A5500 (Weprin) referred to real property taxation
2017: A5500 (Weprin) - referred to real property taxation
2016: A3421 - referred to real property taxation
2015: A3421 - referred to real property taxation
Effective date
This act shall take effect immediately; provided however, that the provisions of this act shall apply to assessment rolls beginning with the 2024 assessment roll.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.